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NY M86301





September 14, 2006

CLA2-RR:NC:TA:361 M86301

CATEGORY: CLASSIFICATION

Ms. Hannah Chan
Business Faith International Ltd.
A8 & A13, 7/F, Block A
Hong Kong Ind. Centre
No. 489-491, Castle Peak Road
Kowloon, Hong Kong

RE: Classification and country of origin determination for a women’s top; 19 CFR 102.21(c)(3); Applicability of Duty free treatment for a product of a Qualifying Industrial Zone; General Note 3 (a)(v).

Dear Ms. Chan:

This is in reply to your letter dated September 2, 2006, requesting a classification and country of origin determination for a women’s top which will be imported into the United States. The provided samples will be returned as per your request.

FACTS:

The subject merchandise, style LAW93T, consists of a women’s top constructed of a 92% nylon 8% spandex tubular knitted fabric. You have indicated the fabric content may also be 95% nylon 5% spandex. The top has a V shaped neckline in front and an upper back that extends straight across from side to side. The shoulder straps are an extension of the 1-1/2 inches wide raschel lace-like fabric used to finish the front and back necklines and the armholes. The garment extends below the waist and is produced from a tube with a self-start bottom.

The manufacturing operations for the top are as follows:

In China:

The tubular fabric is knit with a self-start bottom and clear, continuous lines of demarcation created by a change in the pattern knit directly into the fabric, across the upper edge of the garment.

In Commonwealth of the Northern Mariana Islands or Irbid QIZ, Jordan:

Cut the tubular fabric at the upper edge (front neckline, armhole, and upper back). Sew the lace trim at the neckline, armholes, upper back, and shoulder straps. Sew the labels to the garment.
Attach the hangtag to the garment.
Trimming
Pressing
Inspection
Packing

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for style LAW93T will be 6114.30.1020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other garments, knitted or crocheted: Of man-made fibers: Tops: Women’s or girls’. The duty rate will be 28.2% ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

General Note 3(a)(v)(G), HTS, defines a “qualifying industrial zone” as any area that: “(1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt; (2) has been designated by local authorities as an enclave where merchandise may enter without payment of duty or excise taxes; and (3) has been designated by the U.S. Trade representative in a notice published in the Federal Register as a qualifying industrial zone.” You have indicated that the goods will be produced in a formally designated qualifying industrial zone.

Treasury Decision 98-62 dated July 13, 1998, determined that pursuant to the agreement between the Governments of Israel and Jordan, and by mutual consent of the U.S. and Israel, Customs will exclusively apply the textile and apparel rules of origin set forth in 19 C.F.R. §102.21 in determining the country of origin of a textile or apparel product processed in a qualifying industrial zone.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:"

Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section":

HTSUS Tariff shift and/or other requirements

6101–6117

If the good is not knit to shape and consists of two or more component parts, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession. If the good is not knit to shape and does not consist of two or more component parts, a change to heading 6101 through 6117 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and subheading 6307.90, and provided that the change is the result of a fabric-making process. If the good is knit to shape, a change to heading 6101 through 6117 from any heading outside that group, provided that the knit-to-shape components are knit in a single country, territory, or insular possession.

The definition of the term Knit to Shape is found in Section 102.21(b)(3) KNIT TO SHAPE: The term “knit to shape” applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is “knit to shape”.

In the case of the subject garment, over 50% of the exterior layer has been knit directly to the shape used in the good. Consequently, the subject garment is considered “knit to shape” as the term is defined above.

Section 102.21 (e) requires a tariff shift to headings 6101 through 6117 from any heading outside that group. In this case, the tube knit in China with the lines of demarcation is classified as an unfinished top in heading 6114. The top, completed in the Commonwealth of the Northern Mariana Islands or in Irbid QIZ, Jordan remains classified in heading 6114. Thus, no classification change occurs in the Commonwealth of the Northern Mariana Islands or in Irbid QIZ, Jordan, therefore, the tariff shift is not applicable.

Section 102.21(c)(3) applies where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) and where the merchandise consists of either a good that was knit to shape or (with the exception for goods of certain specifically enumerated headings), was wholly assembled in a single country, territory, or insular possession.

Section 102.21 (c)(3)(i) provides the following: If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit;

As noted above, the garment is considered knit to shape. Accordingly, Section 102.21 (c)(3)(i) is applicable to the subject merchandise. The country of origin for the garment is China, the single country where the garment is knit to shape. Also, the garment will not qualify for preferential treatment under the USIFTA, therefore, the general rates of duty will apply. HOLDING:

The country of origin of the top is China.

Style LAW93T falls within textile category 639. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Angela DeGaetano at 646-733-3052.

Sincerely,

Robert B. Swierupski
Director,

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